Globalization

Globalization

1. Current wave after WOII

   • 1930s currency wars
     • Trade collapsed

2. Post WOII Bretton Woods

   • 1) FX rate stability
     • IMF
   • 2) Develop. finan.
     • IBRD (World Bank)
   • 3) Liber. trade
     • GATT
       • 1980s WTO
       • 1980s also services and agriculture

3. Washington consensus

   • End of 1980s
   • Fiscal discipline
   • Pub. exp. health and education
   • Tax reform (broad and low)
   • Positive, but mar. IRs
   • Comp. tax rates
   • Liber. of capital flows
     • vs. Lib. of trade flows in BW
   • Import lib.
   • Privatization
   • Deregulation
   • Prot. prop rights

4. Emerging economies

   • No clear definition (BRICS + ?)
   • IFC made list in 1980s for financial markets

5. Currently from rules to use of power (Trump, China, Russia)